This article first appeared on GuruFocus .
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Revenue:INR710 million for Q1 FY27, up 6.1% sequentially and from INR668 million in Q1 FY26.
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EBITDA:INR420 million, with a margin of 59.3% (revised to include electricity reimbursement in top line).
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Profit Before Tax (PBT):INR195 million.
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Net Profit:INR145 million, with a net profit margin of 20%.
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Earnings Per Share (EPS):INR12.7.
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Revenue Per Tower:Maintained above INR31,000 (excluding electricity revenue).
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Site Count:6,103 towers with 7,416 tenancies as of Q1 exit.
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New Orders:Received 600+ orders from Vodafone Idea, converting 95 towers (150 tenancies) in June; working on an additional 700 tenancies.
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Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Suyog Telematics Ltd ( BOM:537259 ) received over 600 orders from Vodafone Idea in mid-June and rapidly converted 95 towers (150 tenancies) within 15 days, demonstrating strong execution capability.
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The company is pioneering the use of zinc batteries in the telecom industry, which are fire-resistant, 100% made in India, and priced at INR33,000 versus INR48,000 for lithium, significantly reducing CapEx and operational costs.
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Management is highly confident in achieving 3,000 additional tenancies from Vodafone Idea in FY27, backed by a strong order pipeline of 700+ tenancies and daily loading, with a target of 10,000+ total tenancies by year-end.
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Revenue per tower remains robust at INR31,000 (excluding electricity), and the company maintains a stable EBITDA margin of 59.3% and a PAT margin of 20%, even with the new accounting policy that includes electricity in revenue.
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The industry outlook is positive with Vodafone Idea's 45,000-site rollout plan and BSNL's 2 lakh-site CapEx program, positioning Suyog Telematics Ltd ( BOM:537259 ) to benefit from a massive tower demand pipeline over the next five years.
Negative Points
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Revenue growth was modest in Q1 FY27 (6.1% YoY) as new orders only started flowing from mid-June, with the full benefit expected only in FY28.
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The company faces significant cost pressure from rising lithium battery prices, which have increased by ~50% in the last 2.5 months due to China's subsidy removal and rupee depreciation, impacting CapEx.
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BSNL's rollout remains stalled due to unresolved Tejas equipment issues, with 186 sites still pending billing, and management is cautious about giving any projections until billing starts.
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The company's growth is heavily dependent on Vodafone Idea's funding and execution; if Vodafone's additional funding from SBI is delayed, the 3,000 tenancy target could be at risk.
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The tenancy ratio is still low at 1.2x, and despite targeting 1.8x by FY29, the current ratio limits incremental EBITDA from existing assets, and fiber revenue is expected to remain marginal at 5-8% of total revenue.
Q & A Highlights
Q: What is the current status of the Vodafone Idea (Vi) rollout, and what is the company's target for new tenancies in FY27? A: Tushar Shah, Head of Business Development, stated that the company received its first orders from Vodafone Idea in mid-June and quickly converted 95 towers (150 tenancies) by the end of Q1. He confirmed that the company is highly confident in achieving its conservative target of 3,000 additional tenancies from Vi in the current financial year, with a current order book of over 700 tenancies in hand. The target is based on Vi's aggressive rollout plans and the company's execution capacity.
Q: Can you provide details on the new zinc battery project and its financial benefits? A: Tushar Shah explained that due to a ~50% surge in lithium battery prices (from INR33,500 to INR48,000), the company has fast-tracked its zinc battery initiative. They have partnered with manufacturer GPB batteries and will be the first IP company to launch zinc batteries on sites by mid-September. The zinc battery will cost around INR33,000, matching the old lithium prices, and offers advantages such as being fire-resistant. This is expected to significantly reduce CapEx and operational costs.
Q: What is the company's outlook on the BSNL (BSL) business, and why has the rollout been delayed? A: Tushar Shah stated that while the company remains optimistic about BSNL's long-term potential (2 lakh sites over five years), they are taking a cautious approach. The rollout has been delayed due to unresolved issues with Tejas equipment. The company has 186 sites with pending billing and will only provide aggressive projections once BSNL confirms a start date for the rollout and resolves the equipment issues.
Q: What is the expected revenue and margin impact from the new Vodafone Idea tenancies? A: Tushar Shah guided that the average revenue per tower is around INR31,000 (excluding electricity) and approximately INR50,000 (including electricity). He reiterated that the company will maintain its current EBITDA margin of ~59% and a PAT margin of ~20% for the coming quarters. The full-year revenue benefit from the new sites is expected to be realized in FY28.
Q: What is the company's plan for funding the aggressive rollout, and will it need to raise capital? A: Tushar Shah stated that the company currently has sufficient funds from internal accruals to finance the planned 3,000 tenancy rollout. However, if the company secures more orders than expected, particularly from BSNL, it may consider a fundraise. As of now, no decision has been made regarding external fundraising.
Q: What is the current tenancy ratio, and what is the target for the future? A: Tushar Shah acknowledged that the current tenancy ratio is around 1.2x. He stated that the company is targeting a ratio of 1.8x by FY29, driven by a higher proportion of macro site rollouts. He highlighted that the recent Q1 rollout achieved a ratio of 1.8 (150 tenancies on 95 towers), which significantly improves return on investment, reducing payback from 3.5-4 years for a single tenancy to 18 months for a three-tenancy site.
Q: What is the revenue contribution from the fiber business, and what are its margins? A: Tushar Shah stated that fiber revenue will remain a marginal part of the business, contributing around 5-8% of total revenue in FY27. The EBITDA margin for fiber is similar to the tower business. He noted that most new sites, especially those for Vodafone Idea, are being connected via microwave rather than fiber, so no major jump in fiber revenue is expected this year.
Q: Why did the company revise its target from 12,000 tenancies to 10,500 for FY27? A: Tushar Shah clarified that the 3,000 tenancy target is a conservative estimate based on the INR6,400 crores funding that Vodafone Idea has already secured. He explained that the target will be increased once Vi confirms its next phase of funding and rollout plans. The company is confident in achieving the current target and will update guidance as more clarity emerges.
Q: What is the status of the pending billing for the 186 BSNL sites? A: Tushar Shah confirmed that the billing for 186 BSNL sites is still pending due to the Tejas equipment issue. However, recent news suggests the issues are being resolved, and the company expects to start recognizing revenue from these sites in Q2 FY27.
Q: What is the long-term growth outlook beyond FY27? A: Tushar Shah stated that the company is targeting 5,000 tenancies from Vodafone Idea in FY28, building on the 3,000 targeted for FY27. He noted that the telecom industry is dynamic, and the company has clear visibility for the next two financial years based on the current rollout plans from Vi and the potential from BSNL.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
